Proven Technology

Japannext PTS continuously invests in the optimization of its technology and infrastructure to ensure the growth and reliability of its service over the entire trade lifecycle. This ensures that Japannext PTS remains on the cutting edge when it comes to trading securities in the Japanese market.

We have partnered with NASDAQ OMX to successfully launch a new NASDAQ OMX powered trading system on September 26, 2011. By shifting to NASDAQ OMX’s extensively proven exchange technology, our members have benefit from significant latency improvements and increase in throughput capacity. This system shift will enable us to offer our customers an advanced, low-latency trading system in line with international standards. High-performance trading technology is a vehicle for growth, and Japannext PTS maintains a prime position to further increase our market share and customer-base.

Other peripheral technologies such as a FIX order entry gateway and various market data feeds were developed internally to ensure high performance and low latency characteristics on par with, if not better than, the best exchanges in the US. Our market participants can rely on us to go to great lengths to ensure the redundancy and reliability of our services.

We offer market data information and accept clients’ orders via emerging industry standard protocols OUCH and ITCH. These protocols open up a fast and extremely efficient way to engage with our market. We also support the industry standard FIX protocol.

Besides underlying technology strength, we also strive to improve the business experience of our clients. Today Japannext PTS is the only PTS operator which offers its services during both day and night. Our daytime and nighttime markets are always steps ahead of primary exchanges due to their competitive tick sizes and that our nighttime market takes advantage of the next day’s referential prices, day limits, and tradable security list. For quality trades, during daytime market hours all eligible participants may place their orders to the daytime's sister market (X-Market) where they will be guaranteed to cross only with certain retail flows.

Convenient Market Schedule

Trading Hours
  • VWAP market: 08:00 – 08:48 JST
  • Daytime market: 08:20 – 16:00 JST
  • Nighttime market: 16:30 – 23:59 JST

VWAP crossing times: 08:20, 08:35, 08:48 JST.
X-Market and U-Market are available during daytime market hours.

Trading Days
  • Same trading days as the primary exchange.
Exchange Trading Time Comparison
Exchange Trading Time Comparison

Advanced Market Rules

Order Driven Markets
  • Continuous matching based on price-time priority.
  • No pre-open and close auctions.
  • Supported order types:
    • Limit
    • IOC (Immediate or Cancel)
    • FOK (Fill or Kill)
    • Iceberg (Reserved)
    • Short Sell and Short Sell Exempt

The main PTS market is split into two sessions, refered to as the Daytime Market and Nighttime Market. For more details please refer to Japannext PTS Trading Rules.

The X-Market is a targeted market which sets its focus on retail clients. It has an additional matching rule which prevents crossing between DLPs (Designated Liquidity Providers). This combined with the qualification procedure for buy and sell sides creates an unique opportunity for DLPs to improve prices. For more details please refer to X-Market Information and X-Market Participation Rules.

The U-Market is another kind of targeted market where supply demand balance is defined by a scientifically crafted price tick. A uniform optimal tick size across the trading universe allows DLPs to maintain dense liquidity at most competitive price levels. For more details please refer to U-Market Information.

Exchange Tick Size Comparison
PriceTick Size
Above Up To Japannext PTS TSE TSE TOPIX 100
1,0000.110.1
1,0003,0000.110.5
3,0005,0000.551
5,00010,0001101
10,00030,0001105
30,00050,00055010
50,000100,0001010010
100,000300,0001010050
300,000500,00050500100
500,0001,000,0001001,000100
1,000,0003,000,0001001,000500
3,000,0005,000,0001005,0001,000
5,000,00010,000,00010010,0001,000
10,000,00030,000,00010010,0005,000
30,000,00050,000,00010050,00010,000
50,000,000100100,00010,000

Comprehensive Infrastructure Connectivity Options

Extranet Options
  • Depending on latency requirements, clients can select either IP-VPN or private line service.
  • As part of the managed service, Japannext PTS:
    • Leases, installs, and manages lines commissioned by service providers.
    • Installs and manages routers in clients’ datacenters.
    • Monitors, alerts, and fixes any issues with lines and routers.
Co-Location Options
  • Clients can install and manage network infrastructure in Japannext PTS co-location racks allocated to them.
  • Clients can establish:
    • In-house cross connects to other venues.
    • External connections to required destinations.
    • Local inter-rack cross connects.
  • Clients with presence at the same datacenter can establish in-house cross connectivity via a co-location half/full rack space.
  • Clients gain ultra fast access to the Japannext PTS matching engine.
  • Co-location rack comes with:
    • 10 Gbit / 1 Gbit optical SM fiber or 1 Gbit UTP connection.
    • 100 or 200 V (2.1 kVA) standard power supply.
General Connectivity Diagram
General Connectivity Diagram

Variety of Market Data Feeds

Directly from Japannext PTS
  • Native protocol
  • RDFD (Thomson Reuters)
  • ActivFeed (Activ Financial)
From Market Data Vendor
  • Thomson Reuters
  • QUICK
  • Bloomberg
  • Activ Financial
  • Colt
  • QuantHouse
  • Interactive Data
  • INTERTRADE
  • Fidessa
  • Morningstar
For Market Data Vendors and Direct Feed Subscribers

Full market depth information.

For Terminal Users
Level 1
The best bid and ask price quotes and all derived information including turnover, VWAP (Volume Weighted Average Price) and OHLC (Open High Low Close).
Level 2
Full market depth information.

Risk Management

Fat Finger Limits
Maximum Quantity
Per order quantity is up to 5% of the total number of outstanding shares listed at the exchanges. An order with a quantity exceeding this limit will be rejected by Japannext PTS.
Maximum Value
The standard order value limit is 100 million JPY per single order. An order with a value exceeding this limit will be rejected by Japannext PTS. The 100 million JPY limit can be extended to 2.5 billion JPY by using the special order confirmation flag in an order message.
Price Range
The limit price of an order should be within the price range specified by Japannext PTS. If the limit price is outside this range, then the order will be rejected by Japannext PTS. Newly listed stocks without an initial share price on the primary exchange can not be traded on Japannext PTS.
Value Added Options
Drop Copy
This service is designed to deliver real-time information about activity taking place at Japannext PTS and can be configured to send a message any time an order is entered, canceled, or executed – or any combination of these events. The service can be integrated for straight through processing into a participant’s risk management and settlement systems.
Cancel on Disconnect
For any participant’s FIX order entry port, the cancel on disconnect feature may be activated by request. Once enabled, all open orders created over the FIX session being disconnected due to any reason, will be automatically canceled. For every canceled order, an unsolicited cancellation message will be sent to the participant upon connection re-establishment.
OUCH order entry ports have this feature permanently turned on.
Market Access Control
This service allows users to suspend trading activity on their order entry ports under emergency situations. Upon suspension all open orders will be automatically eliminated and the trading system will start to reject new orders. Users can choose between a web based interface or programmable API.

Industry Standard Clearing and Settlement

Clearing

All trades on Japannext PTS are cleared through JSCC (Japan Securities Clearing Corporation). The benefits are guaranteed settlement on PTS trades (no counterparty risk) and straight through processing for trade settlement.

Settlement

All settlement processing is done through JASDEC (Japan Securities Depository Center). Requirements include MIC (Market Identification Code) for JASDEC PSMS (Pre-Settlement Matching System) and reconciliation processing completion.